PDF _ RL33396 - The Global Fund to Fight AIDS, Tuberculosis, and Malaria: Progress Report and Issues for Congress
11-Jun-2007; Tiaji Salaam-Blyther ; 22 p.

Abstract: The Global Fund to Fight AIDS, Tuberculosis, and Malaria, headquartered in Geneva, Switzerland, is an independent foundation that seeks to attract and rapidly disburse new resources in developing countries aimed at countering the three diseases. The Fund is a financing vehicle, not an implementing agency. The origins of the Fund as an independent entity to fight the three diseases lie partly in a French proposal made in 1998, in ideas developed in the 106th Congress, and in recommendations made by United Nations Secretary-General Kofi Annan in April 2001. Though the Global Fund was established in January 2002, President Bush pledged $200 million to such a fund in May 2001.

As of May 8, 2007, donors have pledged more than $10 billion to the Fund, of which more than $7 billion has been paid. The funds have been used to support more than 400 grants totaling more than $7.5 billion for projects in 136 countries. Each year, the Fund awards grants through Proposal Rounds. There have been six Rounds, with the Board approving proposals in each year since its inception. In 2005, the Fund approved Round 5 grants in two tranches, because initially there were insufficient donor pledges to approve all the recommended proposals. The Fund approved the first group of proposals in September 2005 and the second group in December 2005, after donors pledged to make additional contributions. The Global Fund only approves proposals if it has sufficient resources on hand to support the first two years of a proposed project. This policy is designed to avoid disruptions to projects due to funding shortages. Funding lapses can cause interruptions in treatment regiments, leading to resistant strains of the diseases or death. Funding for a grant's third through fifth years depend on grant performance and on donor contributions.

The Unites States is the largest single contributor to the Global Fund. To date, it has appropriated nearly $3 billion to the Fund, providing $724 million in FY2007, the single largest U.S. contribution to date. Of those funds, $247.5 million was transferred from the U.S. Agency for International Development (USAID), $377.5 million from the State Department, and $99.0 million from the Department of Health and Human Services (HHS).

There has been some debate about the level of U.S. contributions to the Fund. Some critics argue that the United States should temper its support to the Fund, because the Fund has not demonstrated strong reporting and monitoring practices; contributions made to the Fund in excess of the President's request are provided at the expense of U.S. bilateral HIV/AIDS, TB, and malaria programs; and the Fund needs to secure support from other sources, particularly the private sector. Supporters of current funding levels counter that the Fund has improved its reporting and monitoring practices, greater U.S. contributions to the Fund parallel increases in U.S. bilateral HIV/AIDS, TB, and malaria programs, and the Fund has attempted to raise participation by the private sector through the launching of Product RedTM. This report, which will be periodically updated, discusses the Fund’s progress to date, describes U.S. contributions to the organization and presents some issues Congress might consider.

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Topics: International, Population, Information

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